Response:
The correct response is B. shareholders' liability is limited.
Clarification:
The legal representative of bondholders is a vital entity in the issuance of bonds traded in the stock market. This representative primarily acts to conduct necessary actions for exercising the rights and defending the interests of the holders. Their activities are regulated and involve a range of duties around management, defense, communication, and compliance. Additionally, they serve as a voice for the bondholders towards the issuer, the Financial Superintendence, and other parties involved.
The legal representative will carry responsibility for minor faults in fulfilling their obligations.
The solution is available in an excel document.
Helpful details:
Year 4 = $360,000 - $84,000 = $276,000
Preferred share dividend = Total Preferred dividend for that year / total number of preferred shares.
Answer: 90 days and 4.06 times
Explanation:
The short-term operating cycle is calculated by adding Average production process time + Days goods are held + Days Accounts receivable are due]
= 40 + 15 + 35
= 90 days
With a 365-day year, the cycle will turnover;
= 365/90
= 4.0556
= 4.06 times
Answer:
$9.71
Explanation:
The calculations for the share price are outlined below:-
Current EPS = Net Income ÷ Total Common Shares
= $9,250,000 ÷ 5,500,000
= $1.68
Current P/E ratio = Current stock price ÷ Current EPS
= $12 ÷ $1.68
= 7.14
Projected EPS for next year = $9,250,000 × 1.25 ÷ 8,500,000
= $1.36
Forecasted stock price for next year = $1.36 x 7.14
= $9.71
Answer:
A general ledger adjustment should reflect: 1. Debit Bank Fee Expense $45 and Credit Bank Account $45.
Explanation:
The discrepancies between the Cash Book Bank Balance and the Bank Statement Balance often arise due to Unrecorded Items.
The bank's charge of $45 appears in the Bank Statement but was not documented in the Cash Book.
Thus, the appropriate adjustment is to reduce the Cash Book - Bank Balance and acknowledge this expense in the Income statement pertaining to these Bank Charges.
